Every one of us has dream to buy best home at best location. But since it is most expensive purchase we always try to be cautious before investing and spents lots of time and effort in researching and securing the best deal in mortgage.
In order to make your purchase process more easier, now a days you can access internet and can avail all the information on mortgage loans and its repayment process.
Different mortgage fulfill different types of needs and situation:
Different types of mortgage are available depending on your need and situation. In other words we can say that “Mortgage are not a one size fits for all.” Following are different types of mortgage available for you:
- Fixed rate mortgage
- ARM's or Adjustable Rate Mortgage
- Balloon Mortgage
Fixed Rate Moetgages:
This type of mortgage is often considered as the best deal for a mortgage especially for first time buyers. In this type of mortgage loan, the interest rate are always fixed. Thus it is an added advantage for those having fixed budget of household operating expenses.
ARM or AdjustableRate Mortgages:
The other name of ARM is Variable Rate Mortgage. As the name itself signifies, here the rate of interest always varries depending on the rate paid on Treasury Bills or bank certificate of deposits. Here the interest rate is usually lower than the fixed rate mortgage. If you are studying the money market constantly and keeping an constant eye on fluctuating rate, this type of mortgage is the best deal for you.
Balloon Mortgages:
In this types of mortage you don't have to pay the amount monthly. Instead you have to pay the amount in lump sum at the end. This types of mortgages are for those who are planning to stay in their new home not more than 5 to 7 months. Tha advantage is that the interet rate is lower the fixed rate interest.
Thus depending upon your requirement you can choose different mortgages. Before choosing any types you must fully analyse your situation and do not take decision hastely.
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